Marketing of Services: Unit 2, Lecture - Customer Expectations and Perceptions of Services

DR.
APJ ABDUL KALAM TECHNICAL UNIVERSITY
Branch - Management
Marketing Of Services
KMBMK04
Unit 2, Lecture –
Customer Expectations and Perceptions of
Services
By
Dr. Jyoti Prakash

Assistant Professor
Department of Management
School of Management Sciences, Lucknow
Customer Expectation in Services
It is the belief about the service delivery that functions

as standard or reference point against which
performance is judged.
Ideal/Desire
expectation Everyone says this restaurant is as good as one in
America and I want to go somewhere for my
anniversary
Normative As expensive as this restaurant is, it ought to have
Expectation excellent food and service
Experience
Most time this restaurant is very good but when it gets
Based Norms
busy the service is slow
Acceptable I expect this restaurant to serve me in an adequate manner

Expectation
Minimum
tolerance I expect terrible service from this restaurant but come
expectation because of low price
Service Expectations can be Classified as
• Desired Service Expectation

• It is the level of service that the customers expect to
receive
• It is mental expectation of customers which he/she
hopes and wishes to receive
• Adequate level of Service Expectation
• It is what available at present.
• It is the minimum tolerable expectation acceptable to
the customer.
Zone of Tolerance
• Customers recognize and are willing to
accept is called zone of tolerance
• In zone of tolerance the organization and Desired service
customers play a win-win game
• Service above the desired level Zone of tolerance
provides delight
• Service below adequate service level
Adequate Service
creates dissatisfaction
How are customer expectations formed???
• Formed through what customers see, hear & read
 Advertising /Social Media
 Company websites
 Brand Ambassadors
 Style of building or premises(Modern, dark, old)
 Word of mouth from family & friends
 Reviews & comparison
 Articles and press coverage
 Price/quality relationship
 Past experience
 Comparison with other organizations
Customers’ Perceptions of Services
• According to Joseph Reitz, “ Perception includes all those processes by
which an individuals receives information about his/her environment-
seeing, hearing, feeling, tasting and smelling.”
Factors Influencing Customer Perceptions
Factors influencing customer perception
Service Price
Encounter
Service Organizational
Evidence image
Customer’s Perceptions
• Perception is to realize, feel, understand or to experience
• It is the process of systematic organization and
interpretation of an experience
• Perceptions are always considered relative to expectations
• It is called the quality of service received by the customer
• Service encounters or the “moments of truth” are the
building blocks of customer perceptions
Positive Satisfaction
Perception Quality Gap

Expectation
Negative
Dissatisfaction
Encounter
Dimensions of Service Quality
• Reliability: ability to perform the promised service
dependably and accurately
• Responsiveness: willingness to help customers and provide
prompt service
• Assurance: employees’ knowledge and courtesy and their
ability to inspire trust and confidence
• Empathy: caring, individualized attention given to customers
• Tangibles: appearance of physical facilities, equipment
personnel, and communication materials
Customer Satisfaction
• Satisfaction is the consumer’s fulfillment response. It is a
judgement that a product or service feature, or product or
service itself, provides a pleasurable level of consumption-
related fulfillment.
• Satisfaction is the fulfillment of desire or expectation
• It refers to the customers positive evaluation towards
organization, product or service
• Customer Satisfaction = f(Value and Cost)
• Satisfaction and quality are different; satisfaction is the effect,
quality is the cause
Outcomes of Customer Satisfaction
•Quality of life of customer
•Customer loyalty
•Word-of-mouth
•Support the growth and continuity of business
•Market price
•Better economic environment
Strategies for influencing Customer Perceptions
 Measure and Manage Customer Satisfaction and Service Quality
 Aim for Customer Quality and Satisfaction in every Service
Encounter
 Plan for effective Recovery
 Facilitate Adaptability and Flexibility
 Help employees Cope with problem Customers
 Communicate and create a Realistic Image
 Enhance Customer Perceptions of Quality and value through
Pricing
References
• Parasuraman, A., Berry, L. L., & Zeithaml, V. A. (1991). Understanding
customer expectations of service. Sloan management review, 32(3), 39-48.
• Zeithaml, V. A., Berry, L. L., & Parasuraman, A. (1993). The nature and
determinants of customer expectations of service. Journal of the academy
of Marketing Science, 21(1), 1-12.
• Donthu, N., & Yoo, B. (1998). Cultural influences on service quality
expectations. Journal of service research, 1(2), 178-186.
• Cadotte, E. R., Woodruff, R. B., & Jenkins, R. L. (1987). Expectations
and norms in models of consumer satisfaction. Journal of marketing
Research, 24(3), 305-314.
THANK YOU

Marketing of Services: Unit 2, Lecture - Customer Expectations and Perceptions of Services

Uploaded by

Copyright:

Available Formats

Marketing of Services: Unit 2, Lecture - Customer Expectations and Perceptions of Services

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Marketing of Services: Unit 2, Lecture - Customer Expectations and Perceptions of Services

Uploaded by

Copyright:

Available Formats

DR.

APJ ABDUL KALAM TECHNICAL UNIVERSITY

Dr. Jyoti Prakash

It is the belief about the service delivery that functions

Acceptable I expect this restaurant to serve me in an adequate manner

• Desired Service Expectation

Factors influencing customer perception

Perception Quality Gap

•Support the growth and continuity of business

You might also like